The Cargo Letter
THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
30 April 2000
Good Sunday Evening from our Observation Deck...... Overlooking the
officially designated "Cargo City" area and....... Runway 25-Right, at
Los Angeles International Airport, voted "Best Cargo Airport in North
America". Sorry, we have no Elian Gonzalez news this month.
To help you find what you need -- FAST -- there's now a transport search
engine installed at our www.CargoLaw.com
The thousands of Forwarders & Brokers who read this publication around
the world need to learn of YOUR experiences and what YOU learned today.
Contribute your knowledge, stories & company information ........ by e-mail
to The Cargo Letter. We strive to bring
you useful information which is timely & topical. Be sure to visit our web
Michael S. McDaniel, Editor & Publisher, Countryman & McDaniel,
forwarder/broker attorneys at LAX
INDEX to The Cargo Letter:
OUR "A" Section: Trade, Financial & Inland News
1. Freight Forwarder Trade Briefs
2. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
3. Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
4. FF World Ocean Briefs
5. The Cargo Letter Cargo Damage Dispatches
* Back By Popular Demand
OUR "D" Section: FF in Cyberspace
6. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
7. Dotting The "I's & Crossing The "T"s
* AWBs Under Old Warsaw
* Plus Montreal Protocol 4
8. The Risks of DSL Technology For Transport
* This Was Your Warning
- Journal of Commerce Goes "E" - No More Paper ....... as
it will discontinue publication of its daily printed product & launch an
enhanced daily Internet news service & a weekly newsmagazine. The major
change is scheduled for early June 2000. The JOC Group said this will allow
the company to more effectively serve its readers & advertisers in the
Int'l shipping, logistics & trade sectors. Continual updates of breaking
news will be provided on an enhanced Journal of Commerce Web site,
www.joc.com. The site also will provide in-depth stories, features, opinion
columns and industry statistics. Interactive features such as discussion
groups & on-line conferences also are planned for the Web site. On June
5, the Journal of Commerce company will introduce "JoC WEEK," a
glossy weekly publication. The Journal of Commerce is listed in our "24
Hour News" section, along with Associated Press Headlines & Reuters
Breaking News. Start your day at the top end of our main web page for all
the world headlines at a glance! http://www.cargolaw.com
- Special Cargo .......... as the Sydney Organizing Committee for the
Olympic Games (SOCOG) confirms that the Olympic torch will travel into space
on board the U.S. Space Shuttle Atlantis. NASA officials have confirmed that
the Sydney 2000 Olympic Torch has been stored on Atlantis in readiness for
the launch into space scheduled for May 18 from the Kennedy Space Center in
Florida. Australian-born NASA astronaut, Dr. Andy Thomas, said a protective
packaging strategy was used to store the Olympic torch on the shuttle. The
torch's journey into space heralds the start of the Olympic Torch Relay in
Greece following the lighting of the Mother Flame in Olympia on 10 May. The
Olympic torch will travel to the fledgling Int'l Space Station, where the
shuttle's crew consisting of American mission specialists & a leading
Russian specialist will further develop the orbiting outpost.
- Feuding, But Trading .......... as Indian & Pakistani railway
officials agreed on April 13 to keep the only train service between the 2
countries running. "The biweekly Samjhauta ("goodwill")
Express...will not be stopped,'' a report from Wagah said, zero point on the
Punjab border between the arch-rival countries, where a meeting between
senior rail officials took place. Pakistan had threatened last month to stop
the service on April 15 if India failed to meet its commitment to supply the
rolling stock for 6 months each year. India said in a statement earlier that
it would seek to raise other issues relating to the running of trains at the
meeting. India claims that Pakistani agencies have tried to smuggle drugs,
arms and counterfeit money on the train. The train service, which connects
the Pakistani city of Lahore with New Delhi, has been running for more than
2 decades. The controversy over the train has come at a time of increased
Indo-Pakistani tensions over the disputed Himalayan territory of Kashmir.
- A China 1st ........ as on 5 April it formally joined the Bangkok
Agreement, a preferential tariff arrangement aimed at promoting
intra-regional trade. The Bangkok Agreement covers trade between China,
Republic of Korea, India, Bangladesh, Sri Lanka, & Laos, and marks
China's first foray into regional trade accords.
- Sino High Speed ......... as China's Ministry of Railways has
released details of its preparations for a new round of high-speed trains.
To be introduced in Oct., the Ministry has selected a number of lines on
which trains will travel at speeds of up to 160 kilometers per hour. New
locomotives capable of reaching 200 kilometers per hour are being tested,
including the Chinese made Shoushan 8 & Dongfeng 11. The lines selected
for high-speed trains are Beijing to Kowloon; Zhejiang Province to Jiangxi
Province in the eastern part of the country, while the western beneficiaries
are the Lianyungang (Jiangsu Province) to Lanzhou (Gansu Province) line
& the Lanzhou to Xinjiang Uygur Autonomous Region run.
- South Africa Changes Continents ......... as it may soon be joining
Bolivia & Chile as an associate member of Mercosur. Ministers from South
American Mercosur countries will begin negotiations with the South African
government within the next 3 months. It is hoped that the introduction of
South Africa will benefit all the nations involved with Mercosur, especially
in the trade of automobiles. Members of the South American trading bloc are
Brazil, Argentina, Paraguay & Uruguay.
- Two More Dance The Bolero .......... as China Ocean Shipping Co. (COSCO)
& 'K' Line have announced that they have signed up to bolero.net, the
cross-industry community that is moving world trade online. bolero.net
provides the infrastructure to move world trade online by providing a global
e-business platform for importers, exporters, shipping organizations, &
financial institutions. In the process, bolero.net promises to reduce, if
not eliminate, the paperwork and hardcopy documentation currently a part of
Int'l trade. bolero.net was created by the TT Club, which serves as the
investment vehicle for the world's container fleet carriers, ports &
terminals & logistics companies; and banking community through S.W.I.F.T
(the Society for Worldwide Interbank Financial Telecommunications). In
related news, Bolero.net has entered into an agreement with bex.com, a
vendor of Internet transaction infrastructure, to build a global e-trading
& e-commerce system for business-to-business applications. http://www.bolero.net
- Kühne & Nagel Raises War Chest For U.S. Expansion ..........
as it intends to reinforce its position in the e-commerce sector & in
the U.S. forwarding & logistics market by acquisition. An offer to the
public by secondary placement via the Swiss stock exchange during the 1st
half of 2000 is under consideration. As a result, up to 30% of the share
capital & voting rights will be available to the public, 70% will stay
with the Kühne family. T he Swiss forwarder is considering medium to large
acquisitions and wouldn't rule out a "quantum leap." "The
consolidation in the industry continues, and we've resisted offers from
postal services," wire reports quoted Kuehne as saying at a press
conference in Zurich. "We want to remain independent, but the
competition is becoming stronger & bigger." A U.S. acquisition by
Kuehne & Nagel would follow similar moves by European companies, such as
Deutsche Post World Net, which bought Air Express Int'l; and MSAS Global
Logistics, which purchased Mark VII. Kuehne & Nagle unveiled its
expansion plans as it reported a 16% rise in net profit for 1999, the 8th
consecutive year of net profit increases. So who get's purchased?
- UPS Attacks Canada ........ as UPS Canada has filed a lawsuit
seeking to hold the Canadian government responsible for at least US$150M in
damages because of lack of control of the competition rules. The suit, filed
under provisions of NAFTA, alleges that the Canadian government has unfairly
permitted Canada Post to expand into new ventures where it undercuts prices
offered by UPS & other private-sector competitors.
- UTi Buys New Market Share ........... as the company formerly known
as "Union Transport," the California-based forwarder, customs
broker & logistics service provider, has changed it's name &
acquired the business of Wilmington, N.C.-based Southern Overseas. Southern
Overseas operates 12 U.S. offices, including 6 markets that are new to the
UTi network. Southern's Int'l offices includes a company-owned operation in
Bremen, Germany, which will become part of UTi in Europe. The company is
planning an initial public stock offering in the U.S. this year.
- Danzas Alone In S.A. ........... as it has moved South African
forwarding & outsourcing services in-house, following the scrapping of
an outsourcing contract with their handling agent, Grindrod. Danzas assumed
all South African operations, effective April 15. Danzas recently acquired
Air Express Int'l. Also this month, Danzas has acquired a 49% interest in
the Finnish logistics provider Kelpo Kuljetus Fi Oy from Finland Post Ltd.
Kelpo Kuljetus Fi Oy, founded by Finland Post in March 1999, provides
national transport of LTL & groupage traffic as well as parcels. It has
annual sales of US$50M & 860 employees.
- No More Freight Forwarders In Singapore ........... as the
Singapore Freight Forwarders' Assn. (SFFA) has changed its name to Singapore
Logistics Assn. (SLA) to reflect the global nature of the organization. SFFA
was founded in 1973.
- No Wonder .......... as Hong Kong forwarder Wonder Link (HK)
Company Limited has changed its name to Leader Mutual Freight System (HK)
- Urge To Merge ............. as the Canadian National Railway has
filed a U.S. court action to prevent the U.S. Surface Transportation Board
from imposing its 15-month moratorium on rail mergers, which has blocked CN
from joining with Burlington Northern Santa Fe, the U.S. rail group.
- WWPC Brainstorms ......... as the Worldwide Partnership Cargolink
Network, an alliance of Int'l forwarders &logistics companies held its
annual conference from April 9 through April 11, 2000, in Cancun, Mexico.
Over 200 members from 97 countries attended this annual conference to meet
logistics providers & exchange ideas to develop strategies for small- to
medium-size forwarders. WWPC through an agreement with Delvag Insurance
Services (a Lufthansa Company), is the first freight/logistics association
in the world to offer credit insurance, insurance agent to agent protection
on a worldwide basis. This credit insurance is said widely accepted by the
members of this conference. WWPC introduced the development of its own
website "Ecargolink" has secured two domain names,
www.cargoquote.com & www.cargofreightquote.com. Ecargolink is presently
under development by members of WWPC to offer a wide range of internet
services from instant freight quotation by air & sea, track & trace,
on-line buying & selling of capacity by the carriers and logistics
companys. The program will include global routes & locations. Ecargolink
will be designed to offer compelling benefits to the participants,
forwarders & carriers, as well as to the shipper & importer.
- Fritz Responds ....... as it has unveiled its new proprietary
"Global Response Tracking System," which allows the Int'l freight
forwarder & customs broker to tailor specific action plans to serve each
customer's needs. The system uses sophisticated monitoring, compatibility
& routing intelligence to connect the right people in process
fulfillment. Fritz expects to add the system to its Flex Internet suite by
June 1. "Our customers will notice substantial improvement in the ease
of doing business with Fritz Cos.," said Lynn Fritz, chairman &
- E-Portal Gets New Clout .......... as Transportation.com, an online
transportation marketplace for shippers, carriers & private fleet
operators, has announced the appointment of Samuel K. Skinner, former U.S.
Secretary of Transportation, as it's chairman of the board. http://www.transportation.com
- E-Transports Merge ......... as NeoModal.com, a provider of
business-to-business transportation & logistics services on a global
basis, has announced the acquisition of eRateRequest.com in an all-stock
transaction. eRateRequest.com, an Internet exchange for ocean containerized
freight services, provides a secure venue for the efficient purchase or sale
of vessel space on a port-to-port or inland destination basis.
- Some Animal-Origin Health Certificates To Be Extended ...........
as the U.S. Dept. of Agriculture has proposed to extend the validation time
for its origin health certificates beyond 30 days in some cases, based on
destination country requirements. An exported animal must be accompanied by
an origin health certificate. The document certifies that the animal has
been inspected within the 30 days prior to import. It also includes all test
results and other certificates & statements required by the importing
country. USDA says the purpose of the extension is to cover those cases
where the importing country either allows or requires testing more than 30
days prior to export. In some cases, the importing country wants to test the
animals again upon arrival. Since a certain interval of time must elapse
between tests, the country requires pre-export testing to be conducted more
than 30 days before the date of export.
- U.S. Customs Wants To Know ......... as it is considering whether
to combine its Milwaukee & Racine, Wis. port operations & expand its
area of coverage in southeast Wisconsin. Combining the ports would offer
better service to carriers & importers through more efficient use of
inspectors, facilities and resources. The industry should submit comments to
Customs' Office of Regulations & Rulings in Washington by no later than
- FedEx Customs Buy ........... as FedEx Trade Networks, Inc., a
subsidiary of FedEx, has acquired World Tariff, Ltd. San Francisco-based
Worldtariff publishes customs duty & tax information for customs areas
worldwide. The company collects data from the world's customs authorities,
then simplifies, standardizes & translates it into English. Information
from Worldtariff provides an invaluable resource for logistics optimization
& calculating the landed cost of Int'l shipments. Annual subscriptions
are available in 3 formats: online, loose-leaf, & data elements.
- Customs Considers New Fees ......... as to offset the cost of
building Customs' future computer system, the Clinton Administration is
considering a user fee based on volume of data filed through the agency
current system. The user fee may be based on the amount of "data
bytes" or lines of data on paper documents filed with agency. Value of
the merchandise processed in Customs' current Automated Commercial System
would not be considered. The amount of money generated from the user fee
would not exceed the estimated US$210M annual cost to build ACE. Congress
& industry aren't expected to support the Administration's proposed user
fee. Customs already collects user fees from the industry to cover
inspection costs under the 1985 Consolidated Omnibus Budget Reconciliation
Act (COBRA). COBRA fees generated US$274M for Customs in fiscal 1999. The
agency also collects about US$900M a year from the Merchandise Processing
Fee (MPF). This money was originally intended for Customs' system
development, but it ends up in the government's general funds. Industry
officials say they won't support another user fee. Money for ACE development
should come out of general funds.
- Phoenix Int'l Freight Services ......... as America's largest
privately owned NVOCC has a new partner alliance with German forwarder.
- Hellmann's Heart .......... as after upgrading its regional offices
to full Y2K compliance, Hellmann Worldwide Logistics was faced with the
disposition of computer equipment that had been replaced by new models. For
Hellmann the problem was resolved by donating the equipment to a children's
foundation in La Paz, Bolivia. One hundred PCs complete with modems, new
CD-Rom drives, & color monitors will be delivered to Padre José
Neuhofer at the Fundacion Arco Iris in La Paz, Bolivia. Padre Neuhofer has
dedicated his life to getting children off the streets and giving them
access to an education. Hellmann Worldwide Logistics is a family owned
private company established in Osnabrück, Germany in 1871.
- Effort To Stop Unwanted Immigrants ............ as the U.S. Dept.
of Agriculture's Animal & Plant Health Inspection Service will hold a
meeting with the shipping industry to discuss ongoing efforts to keep
destructive foreign pests out of the country. The meet, scheduled for May
18-19 at the USDA Conference Center in Riverdale, Md., will include
presentations about the latest risk assessment methods; the agency's
obligations to Int'l trade agreements, and the status of ongoing process
improvements. The symposium is free. Contact Meredith C. Jones, regulatory
coordination specialist for APHIS at (301) 734-7467.
- Int'l Air Cargo Assn. of Chicago .............. as Annual Golf
Scramble will be Fri., May 12, 2000, at Maple Meadow Golf Course, Wood Dale,
IL 60191. Please call Sharon Roman at 630-350-2484
- Visit The Cargo Letter ......... as we have just begun a new
Internet feature to show you our famous "Observation Deck......
Overlooking the officially designated "Cargo City" area and.......
Runway 25-Right, at Los Angeles International Airport." In coming
months, we'll tour LAX, let see our offices and meet the staff. Please stop
- They're Back ........... as there is a new warning to be on the
alert concerning an age-old, worldwide scam involving a group referring to
themselves as representing the "Nigerian Federal Ministry of Finance,
Foreign Contract Dept.". A message sent via fax machine or letter to
scores of people around the world states that the group is secretly
contacting you about a large sum of money (US$96M) that you can lay a 30%
claim to, if you send the group your bank & residential information. In
fact, what happens is that victims who fall prey to this "get rich
quick" scam have their bank accounts wiped out. Unfortunately, Nigerian
government officials have not been cooperative with law enforcement agencies
throughout the world in putting a stop to this illegal scam. Problems should
be reported to the U.S. Secret Service.
- Heavy Praying ............. as husband & wife were seized at a
Colombian airport on Good Friday as they tried to smuggle almost seven
pounds (3 kg) of cocaine hidden in the pages of a Bible on to a flight bound
for Mexico. The couple, in their late 50s, were arrested at Rionegro airport
on the outskirts of the Northwest city of Medellin, the former power base of
the infamous cocaine mob run by Pablo Escobar. "Our suspicions were
aroused when we picked up the Bible & saw how heavy it was,"
regional police chief Col. Ruben Carillo told reporters. He said the couple
had also concealed an unspecified quantity of the drug in the heels of their
shoes & the lining of their clothes.
- American Freightways. UP with a 97% increase in net income for the
quarter ended March 31, 2000 to US$13,376,000.
- Atlas Air. UP with a 17% rise in net income to US$12M, another
record quarter for the carrier. Operating income rose 18% to US$43.2M on a
21% increase in revenue of US$166.4M.
- Boeing Co. DOWN with 1st quarter 2000 revenues & net earnings
of US$ 9.9B & US$418M, respectively, down from the same period last
- China Eastern Airlines. UP with a return to profitability for 1999,
despite sizable losses on foreign currency loans. The Shanghai-based
airline's net earnings last year were US$18.4M, rebounding from a loss of
US$58.7M in 1998. Had it not been for a foreign exchange loss of US$13.5M,
owing to the strengthening of the Japanese yen, the figures would have been
even more promising.
- Continental Airlines. UP with 1st quarter net income of US$14M,
it's 20th consecutive profitable quarter.
- COSCO Pacific. UP with a net profit of US$134.1M for 1999, a 3.7%
increase on the previous year.
- CP Ships (owned by Canadian Pacific Ltd.) UP as 1st-quarter net
income of $35 million, jumped 218% from the year-earlier period. Operating
income rose US$27M to US$40M. Container volume rose 44% to 437,000 TEUs, due
to CP Ships' full ownership of Americana Ships & an 11% increase in
- Forward Air. UP as 1st quarter operating increased to a record
US$49.4M, an increase of 31.0%. Operating income for the period was US$7.4M,
an increase of 34.6%. Net income for the quarter was US$4.6M, an increase of
- Geologistics. DOWN with a net deficit of US$49.7M for 1999, pushing
the groups long term debt up to US$152.9M. The company had a net loss of
US$38M in 1998.
- Hub Group, Inc. DOWN as revenue totaled US$328.6M for the 1st
quarter, an increase of 6.8% over the comparable period in 1999. But there
was a net loss of US$317,000, or $0.04 per share, for the quarter compared
to net income of US$1.9M in 1999.
- Kuehne & Nagle. UP net with income of US$61M. Gross revenue
increased 0.2%. Gross profit was up 2%, while operating profit jumped 14%.
- Matson Navigation Co. UP with 1st quarter operating profit of
US$19.9M, up US$1.6M or 9% over same quarter 1999.
- Neptune Orient Lines. UP with a strong second half to achieve
US$94M in profit for the year ending Dec. 31, compared to a loss of US$254M
- Northwest Airlines. UP with net income of US$3M or $0.03 per
diluted common share for 1st quarter, 2000. This compares to a net loss of
US$29M or $0.36 per diluted share for same period 1999.
- Overnite Transportation Co. (the trucking subsidiary of Union
Pacific) DOW N with a 90% decline in profits & 4% drop in freight hauled
in its 1st quarter results. Operating income was US$1M compared to US$10M in
the 1st quarter of 1999. In the last quarter of 1999, Overnite suffered a
- Schenker Int'l. DOWN as operating profit dropped 26% to US$93M last
year, which the company said was mainly due to high amortization &
interest payments over the purchase on the remaining shares in Swedish
trucking & forwarding company, BTL.
- Port Authority of Singapore (PSA). UP with an 18% increase in net
profit before tax in 1999. Group net profit before tax increased to US$640M,
up from US$540M in 1998. After tax, net profit was US$435M, a 4.5% increase
on the previous year. Economic Value Added (EVA) registered a positive
US$51M. Container volumes saw a 5.3% increase over 1998, with PSA handling
15.9 million TEU.
- Stamps.com. UP with 1st quarter revenue increased 470% from the
previous quarter to US$2.04M while adding more than 114,000 new customers to
end the quarter with 187,057 customers.
- Union Pacific Corp. UP as 1st-quarter net income rose 43% to
- UPS. UP with record results for the 1st quarter with a 23% gain in
Int'l export package volume pacing strong growth across all segments. Net
income jumped 63%. Revenues for the 3 months ended March 31, 2000, climbed
14% to US$7.2B from the US$6.3B reported during the prior-year period. Net
income rose to US$813M, compared to the US$499M.
- US Airways Group, Inc. DOWN with a net loss of US$115M & an
operating loss of US$139M for 1st quarter of 2000
- Yellow Corp. UP as net income for the 1st quarter ended March 31
was US$10.5M, up 116% from the year-earlier quarter. Revenue was up 21% to
US$882.1M. Operating income jumped 115% to US$25.3M. Less-than-truckload
tonnage increased 7.8%.
- Kitty Hawk Stumbling ........... as the Dallas-based air freight
carrier primarily active in the domestic U.S. market, is facing severe
financial trouble that could ground the airline. On April 28 the company
announced that it will suspend operations at its Int'l division. Kitty Hawk
announced on April 13 that it: 1.] Anticipates writing down the value of
many of its older planes; 2.] Will have to restate last year's operating
results; 3 .] May miss an interest payment due in May; and 4.] Its chief
financial officer has resigned after less than two weeks on the job.
"The company gives no assurances that its cash position will not
imperil its ability to fulfill other obligations necessary for continuation
of its operations," Kitty Hawk said. Ernst & Young, Kitty Hawk's
outside auditor, has advised the airline that it will include in its audit
opinion a statement questioning the company's ability to continue as a going
concern. The airline expects to miss a US$17M interest payment due May 15 on
its senior secured notes, & is trying to sell or refinance
"significant assets" to meet the terms of its loan agreements. On
April 22 Kitty Hawk chairman, CEO & founder, M. Tom Christopher
announced his resignation.
- Boeing Sees Air Cargo Growth ......... as this year it will deliver
more 747 freighters than 747 passenger jets, the largest commercial airplane
in the world. Boeing expects cargo operations to expand 6.4% a year over the
next few years, a faster rate than growth passenger traffic. Boeing says
that Asia will lead the growth. The Seattle-based manufacturer accounts for
95% of cargo aircraft in the world, including airplanes built by McDonnell
Douglas, acquired by Boeing 3 years ago.
- Boeing Sees Airbus Grow ............. as an eagerly awaited 1st
order for Airbus's planned "A3XX superjumbo" should blow away
skepticism from rival Boeing over the market for the mammoth plane and up
the chances of a timely launch, Airbus said today. Dubai's state-owned
Emirates Airline ended months of anticipation over who might place the first
order for an A3XX, announcing it planned to buy five of the aircraft for
delivery in 2006 & 2007 with an option for five more. The order sets the
ball rolling for Toulouse-based Airbus's quest to end Boeing's monopoly of
the jumbo market & may dissipate fears that the A3XX project, expected
to cost US$12B, could be derailed by a dearth of demand for a larger plane
than Boeing's 747. Emirates Airlines, which placed its order after reviewing
the superjumbo's performance and economics, said it was also considering
adding two A3XX freighters to its order. While Airbus set its sights on a
launch in late 2000, with delivery of the initial A3XX-100 passenger version
by late 2005 and the cargo plane 18 months later, it always said the timing
would ultimately depend on the number of planes airlines were willing to
commit to. The 555-seat capacity A3XX has been labeled "a cruise ship
in the sky" by U.S. aerospace giant Boeing, which has forecast rising
demand for smaller & mid-sized commercial jets and a market for less
than 400 A3XX-sized jets over the next 20 years.
- Freighter Down In Lake Victoria - Again ........ as a DC-10F cargo
plane crashed in Lake Victoria after overshooting the runway at Uganda's
Entebbe Airport today but the 7 crewmen were rescued unhurt. The plane had
flown from London's Gatwick airport carrying 50 tons of cargo. Airport
authorities said the DC-10, registered in the U.S. but operated by an
Ugandan firm called Dairo Air Services, crashed shortly before dawn. The
crew suffered no serious injuries but were sent to Entebbe Hospital for
further checks. The plane was extensively damaged with the cockpit breaking
away from the main body. All the cargo sank. Uganda's Transport Ministry
will investigate the crash. If this story sounds familiar, that's because
cargo planes crashing into Lake Victoria are becoming common place. See our
quite a mazing water crash photos of the Trans Arabia Air Transport DC-8F
that made this plunge on Feb. 3. http://www.cargolaw.com/2000nightmare_africa_air.html
- Fine Air Services Pleads Guilty .......... as the Miami-based
all-cargo carrier Fine Air Services & air cargo company Aeromar have
pleaded guilty to 5 charges of obstructing justice & making false
statements related to a federal investigation of a Fine Air freighter crash
in 1997 that killed 5 people. The 2 companies will pay US$5M in criminal
fines. Fine will pay US$3.5M. Both companies are subject to 4 years'
probation. Fine admitted that some of its supervisors ordered employees to
change manifests in the days after the crash and that it lied to federal
regulators about aircraft inspections. Aeromar admitted to taping over
warehouse surveillance cameras and to destroying cargo weight documents.
Fine Air Flight 101 crashed just after takeoff from Miami Int'l Airport,
killing 4 crew members & one person on the ground. Federal investigators
ruled that pilots lost control of the DC-8 after several unsecured pallets
of fabric shifted during flight.
- Northwest Not Fine ....... as it faces a US$55,000 fine for
improperly carrying hazardous cargo on a passenger jet. The FAA says
Northwest carried a 50-pound container of compressed hydrogen from Guam to
California on 2 separate flights April 25, 1999. Under FAA rules, airlines
must use cargo-only planes to fly such flammable containers. The proposed
fine is for carrying the container & failing to provide proper paperwork
to the pilot on one of the flights.
- The Most Infamous Cargo ......... as an allegation that LanChile
transported a shipment of oxygen generators as "company material"
aboard a passenger flight bound for Miami from Santiago has prompted the
Federal Aviation Administration to propose a US$332,500 fine against the
carrier. The shipment, which was undeclared, violated tough U.S. Hazardous
Materials rules. The rules prohibit oxygen generators, which federal
investigators believe caused the fatal crash of a Valujet aircraft 3 years
ago, from being carried on passenger flights & must be marked for cargo
- Sky's The Limit ........... as the Air Transport Action Group
(ATAG) at Geneva has conducted a recent study into future worldwide
commercial air transport trends. The results indicate that the present
annual gross output of US$1.36 trillion is likely to grow to US$1.8 trillion
by the year 2010. Jobs created are also expected to rise to 31 million from
the current 28 million level. Overall, a 4 to 5% growth in passenger &
freight traffic is predicted, a greater rate than the expected global GDP
growth. Presently, 40% of the world's manufactured exports, in terms of
value, is transported by air. The industry posted an increase of 6.2% in
volume carried for 1999. For 1999 the world's airports handled a total of
60.8 metric tons of goods, with the Asia Pacific region recovering strong to
post an impressive 12.9% growth, the equivalent of 15.4 million metric tons
being carried. European airports saw a 4.9% rise to 11.9 million tons while
North American traffic rose 4% to 28.7 tons.
- Forwarders Demand Capacity ......... as a group of leading Int'l
air freight forwarding companies has signed a joint statement to the U.S.
Dept. of Transportation (DOT) requesting more dedicated air freighter
service to satisfy the diverse shipping demands of their customers in the
U.S.-China market. Companies signing the statement were: Airborne Express ,
Danzas-AEI, Circle Int'l , Inc., Eagle Global Logistics, Emery Worldwide ,
Expeditors Int'l, Fritz Companies , Kuehne & Nagel, & Schenker
Int'l. Stating that "the belly capacity on additional combination
flights will not satisfy our commercial requirements as air freight
forwarders in the U.S.-China market," the companies urged the DOT to
"allocate the new U.S.-China carrier designation and frequencies for
dedicated freighter service." The companies explained that combination
flights do not offer the flexibility of main deck lift for large shipments,
oversized pieces & high-density commodities.
- Electronic Ties That Bind ........... as Deutsche Post World Net
& Lufthansa Cargo have launched 2 joint ventures to consolidate their
mutual interests in electronic commerce logistics. Deutsche Post &
Lufthansa are to form a company called e-logic in order to grow their
e-commerce related logistics business. The new company is to focus on
business-to-business issues & investments. The 2 German companies say
their alliance is a logical progression of their existing customer-supplier
relationship. The deal is likely to mark the start of increased cooperation
between the two with a cargo alliance in the pipeline that is likely to
include DHL Int'l, Scandinavian Airlines & Singapore Airlines. The
possible inclusion of other members of the Star Alliance is likely at a
later date. German post office owner, Deutsche Post, also owns Danzas-AEI,
the world's largest air forwarding operation, which happens to be
Lufthansa's biggest customer. Indeed, it all gets rather complicated.
- Gassed By The Cargo Tax .......... as EU based airlines are seeing
red over a proposal by the EU to levy a new fuel tax. Carriers say the tax,
which is intended to compensate for damage to the environment on the
'polluter pays' basis, is going to saddle them with a huge cost burden at a
time when fuel prices are already hitting new heights. The tax is set to be
in the region of US$250 per 1,000 litters of aviation fuel -- meaning the
additional bill for a large aircraft like the B-747 could be as much as
US$50,000 per flight. Initially, the EU wants its member nations to apply
the tax on domestic flights within its boundaries -- a proposal it 1st put
forward some 3 years ago. The body is then expected to apply political
pressure to have the measure adopted worldwide. Carriers have slammed the
idea as unfair & impossible to implement, saying that the complexity of
existing European air agreements does not provide the framework that this
type of legislation would require. Analysts are predicting that the EU
proposal will once again be shelved in the face of an industry united in its
hostility towards the measure. We quite agree.
- KLM Cuts Alitalia .......... as it has pulled out of its pioneering
cargo & passenger joint ventures with Alitalia after less than 6 months.
The Dutch airline cited delays in developing Milan's new Malpensa airport
and privatizing the state-owned Italian airline. 'The joint ventures will
cease to exist with immediate effect,' KLM said in a terse statement. KLM
also said Alitalia must repay the US$90M KLM has invested in the Malpensa
- UK Buys Part of Spain! ........ as British Airways has now
finalized its 9% shareholding in Iberia & will take 2 seats on the board
of the Spanish flag carrier. The deal, worth US$245M, makes BA Iberia's most
important partner in the aviation industry.
- SwissAir The Boss At Sabena ......... as subject to EU & other
statutory approvals, the SAirGroup will increase its holding in Sabena from
49.5% to 85%.
- Recent Code-Sharing Agreements .......... as Air Malta & Trans
World Airlines (TWA) have joined to offer new destinations in Europe &
the U.S. Delta Air lines & South African Airways also recently signed
has led to the opening up of over 500 new destinations for their customers.
- New Austrian Star .......... as the U.S. government has cleared an
alliance between Austrian Airlines & United Airlines, clearing the way
for Austrian to join the Star Alliance of carriers, anchored by United &
Lufthansa. Initially, the Austrian-United alliance will focus on passenger
services. The deal marks another expansion of Star, clearly now the world's
largest airline grouping. The Austrian Airlines Group -- including Austrian
Airlines, Lauda Air & Tyrolean Airways -- joins Air Canada, Air New
Zealand, All Nippon Airways, Ansett Australia, Lufthansa, SAS, Thai Airways
Int'l, United & Brazil's Varig as Star members. Singapore Airlines will
join in April, Mexicana in July, & British Midland in the 3rd quarter.
- Russia Opens The Door ........ as it's air transport authorities
hope to gain 30% of Trans-Pacific air traffic by opening up the corridor
between Tokyo & Anchorage, Alaska. Deputy Chief of the Russian Federal
Air Transport Service (FSVT), Victor Galkin, said earlier this month that
the route would run along the Russian Far East border, taking advantage of
more favorable winds than existing routes, & would be shorter. The
route, unused due to a lack of controlling & communication facilities,
is presently administered by Japanese air traffic controllers & the U.S.
- Just Say No To Singapore Airlines ......... as it has yet again
been refused fifth freedom rights from Heathrow to the U.S. For 10 years the
airline has been trying to gain access to the lucrative transatlantic
market, but so far without success. Although it has been offered rights from
regional airports in the UK, the company is not interested in these.
According to company sources, only flights from Heathrow are a valid
commercial prospect. In contrast to SIA, Pakistan Int'l Airlines (PIA) has
jumped at the chance to start operating out of Manchester airport to New
- PAL Pact .......... as Philippine Airlines has reached an agreement
to sell space on Lufthansa-operated cargo flights between Manila &
Frankfurt. The deal gives the Philippine flagship carrier a presence in the
European cargo market for the 1st time in nearly 2 years. The joint service
began this month. Lufthansa is the largest carrier of Philippine cargo to
Europe, handling 4,195 tons in 1999, for a market-leading share of 18%.
Cargo operations account for some 12% of PAL's operating revenue.
- Cargolux IPO? .......... as it could launch an initial public
offering (IPO) to raise at least US$150M in Q4 this year, says the chief
financial officer of the cargo airline. The IPO would be largely used to
reduce outstanding debt from aircraft purchases & to pay for 2 further
B747-400 freighters to be delivered in 2001 & 2002. It already has 10 of
these aircraft which can carry 120 tons of cargo. Cargolux is forecasting
revenue growth in 2000 of 17% up from last year's 11.4% rise to US$644M.
- American Airlines Cargo Stable .......... as it has backed away
from plans to add an additional 5-cents-per-kilo fuel surcharge on certain
Int'l shipments, effective May 1. American said it scrapped the plan because
of the recent stabilization of fuel prices.
- KLM Cuts Way Back ......... as it is to scrap a minimum of 180
pilots' employment contracts, as a result of the reduction in production by
a further 5%. This will also cost 1,200 male & female flight attendants
- New IATA Forwarder Regs ........... as Cargo Network Services, the
U.S. division of the Int'l Air Transport Assn., will now require its cargo
agent & forwarder members to increase security. By Jan. 1, 2001, CNS
members must have at least one trained security person at each office,
including branch offices. CNS has helped its members by referring them to
IATA-endorsed dangerous goods training schools & CNS-approved
non-IATA-endorsed training centers. CNS said it's pursuing security
improvements in the air-cargo industry to meet the U.S. Federal Aviation
Administration's Indirect Air Carrier Standard Security Program.
- Easter Record For Chek Lap Kok ............ as Hong Kong Int'l
Airport had a record number of flight movements on April 21, the 1st day of
the Easter holidays, a spokesman for the Civil Aviation Dept. announced. The
airport handled 613 flight movements on this peak traffic day, up 25% on the
daily average of 490. The Civil Aviation Dept. accepted slot requests from
20 airlines to operate an additional 430 scheduled & ad-hoc charter
flights during the 2 week period from April 17 to April 30. Most
applications were for the April 21 to 24 period.
- Hong Kong Volume Soars ........ as import demand from the U.S.
&Europe has driven up air cargo growth in Hong Kong, reported Hong Kong
Air Cargo Terminals Ltd (HACTL). HACTL processed a total of 152,912 tons in
the 1st quarter of 2000, a 21% increase on the depressed level in the
corresponding quarter in 1999. Although the growth is encouraging, the 1st
quarter is usually a poor indicator for annual trends due to disruptions
linked with Chinese new year, Easter holidays & the annual pre-Christmas
surge in export trade.
- Virgin Deal Founders ........ as "Virgin Australia," the
new line being set up by Sir Richard Branson, suggests that plans to bring
Singapore Airlines into the venture have foundered. It is said that SIA had
not formally pulled out of negotiations, but that there had been no
substantive talks in recent weeks because of the Singapore carrier's
negotiations to take a strategic stake in Air New Zealand.
- All Com At United .......... as it has acquired the rights to 2 new
Internet addresses, United.com & Unitedairlines.com, from a private
seller for an undisclosed price. The carrier just used www.ual.com in the
- China Airlines Certified .......... as it has become the 1st air
carrier in Taiwan to obtain ISO 9001 Int'l quality certification.
- 8th Annual Int'l Airline CEO Conference ......... as the popular
event will be held in Orlando on May 7-9 at the Loew's Portofino Bay Hotel,
Universal Studios, Orlando. Additional information about the conference may
be obtained from AvNews, at 305/876-9339.
- Parlez-vous English? ........... as Air France has suspended the
obligatory use of English by pilots using Paris's Charles de Gaulle airport
after a move meant to improve security ended up as a cause celebre over the
preservation of French. The incident reflects the sensitivity of the
authorities to the creeping use of English & a decline in the importance
of French in commercial activities.
- Pet Seats Cheaper ......... as a man traveled more than 2,000 miles
to Memphis, Tenn., while hiding in the cargo hold of a Northwest Air flight.
The stowaway settled into the heated & pressurized front section of the
cargo hold, where pets are kept, as Flight 946 left Seattle on April 22. On
arrival in Memphis, he asked baggage handlers for a ride to the terminal,
but when challenged, he fled. "You don't anticipate that there will be
a person when you open the cargo door," said Kathy Peach, a
Minneapolis-based Northwest spokeswoman. She said the man appeared to be in
his late 20s. The FAA & Seattle port police were investigating.
- Before They Go Up ........... as KLM pilots have been warned
against the effects of the Viagra pill, because the latter could negatively
influence their flying skills. In the information bulletin of their group
committee, a magazine published by the works council, the pilots are told
that some airlines have emphatically prescribed regulations for use of this
- Betty Jean Needed A Diaper ......... as a gun discharged in a
baggage compartment on an Alaska Airlines flight while the plane was on the
ground, but no one was injured. The bullet from a .357-caliber Ruger went
from the cargo hold into the passenger area and lodged in a diaper bag on
April 24 aboard Flight 101. The 737 jetliner was scheduled to depart
Portland Int'l Airport for Anchorage, Alaska. The crew & 86 passengers
on board were transferred to another plane. Passenger Betty Jean Smith, 66,
of Eagle River, Alaska, was charged with reckless endangerment &
concealing a weapon without a permit. She was released to relatives in
Vancouver, Wash, after using one of the diapers. The gun was 1 of 2 stored
in her bag.
- Shipper Groups Back OECD Antitrust Review ........... as a
statement has been issued by the Canadian Shippers' Council European
Shippers' Council; Federation of ASEAN (FASC) Shippers' Councils; The Hong
Kong Shippers' Council; Japan Shippers' Council; Korean Shippers' Council;
The National Industrial Transportation League (US); Singapore National
Shippers' Council & the Thai National Shippers' Council.
In their "Comments of the Tripartite Shippers' Group to the
Organization for Economic Cooperation & Development's Discussion
Document on Regulatory Reform in International Maritime Transport", the
shippers organizations state their "Declaration:
- That freight rates should be established through free market
- That ocean transport should be guided by a free market economy and is
preferable to anticompetitive practices among price fixing cartels;
- That shippers should have the ability to enter into confidential and
individual price and service arrangements without the interference of
so-called "voluntary guidelines" observed and practiced by
- Total opposition to price fixing by liner carrier cartels;
- That sunset provisions as recommended by reform legislation currently
proposed in Canada should be internationally implemented to create a
more efficient, market based ocean transport system. Such a process
would enable ocean carriers to be able to adapt to the new market
- Where the shippers and carriers agree, terminal handling charges
(THCs) should not exceed the actual costs incurred and should not be
used as arbitrary assessments against shippers;
- Where appropriate, a consultation mechanism should be employed with
shipper organizations and/or their representatives...
Conclusion: The OECD should be commended for its work in producing a
discussion document as well as organizing the May, 2000 workshop to address
the myriad of issues involved in international maritime transport. Clearly
everyone involved in the industry has an important stake in seeing efforts
go forward in having a viable freight transportation system which is capable
of meeting the immediate and long term needs of international commerce. We
look forward to working with everyone in the maritime community to ensure
that these goals can truly be met."
- 1st Quarter Pirate Stats Told ........... as Indonesia scored the
highest number of pirate attacks in the 1st quarter of the year with 19
raids or attempted raids on shipping in its waters, the Int'l Maritime
Bureau said in a report. For all of last year, a total 113 piracy cases were
reported in Indonesian waters, 18 of them in the 1st quarter. There were 56
pirate attacks or attempted attacks worldwide in the 1st quarter of 2000,
down from 66 in the same period last year, the report said. Seven of the 56
attacks were in the Malacca Strait, between peninsular Malaysia & the
Indonesian island of Sumatra. Five were reported in Indian waters while
Bangladesh & Nigeria had 4 cases each.
Locations of actual & attempted attacks in the1st Quarter, Jan.
|China, Hong Kong,
|East China Sea
|Hong Kong, Luzon,
|Papua New Guinea
|South China Sea
|Rest of the World
- Asian Nations Take Pirate Vow......... as on April 28 Maritime
authorities from 15 countries -- including Japan, China, Indonesia,
Malaysia, India & S. Korea -- wrapped up a 2 day conference in Tokyo on
piracy by adopting an action plan calling for increased cooperation between
nations. "Taking into account that recent piracy & armed robbery
against ships seems to be connected to Int'l syndicates, seems therefore to
be more brutal, & seems to be operated beyond one country's
administration (we) shared the view that it is necessary to promote mutual
cooperation," a communique issued at the end of the conference said.
They agreed to beef up information exchange & work towards formulating
concrete measures to be taken in the event a ship is attacked, including
possible joint patrols of hazardous areas. But authorities were forced to
admit that effective action will take time & that their hands are tied
in many cases by a lack of resources to combat the problem. "Those in
charge of guarding the seas may not have enough resources in terms of the
number of vessels or other required equipment, or the personnel may not have
had adequate training," said Shogo Arai, commandant of Japan's Coast
Guard & chair of the conference. In just one example of this, Indonesia,
a piracy black spot, has only 9 patrol boats to cover its sprawling
archipelago. Japan responded by offering to set up a training program in
Japan for coast guards from nations that requested it and said it was
willing to provide other assistance as part of its overall economic
assistance packages. The dangers of piracy were emphasized by the 23 April
kidnapping of 21 people, including 10 foreign tourists, from Malaysia's
Sipadan Island. The Philippines, where the hostages are now being held, says
the kidnappers are a mix of fundamentalist Moslem rebels & ex-guerrillas
turned bandits. Pirate attacks worldwide surged 40% in 1999 according to a
report released earlier this year by the Int'l Maritime Bureau (IMB), with
the bulk of that increase occurring in Southeast Asia. Of the estimated 285
attacks throughout the world that year, 158 took place in Southeast Asian
waters -- up from 70 in 1994. Japan is especially vulnerable to piracy in
the region as a substantial amount of its trade with the West passes through
the Malacca Strait between peninsula Malaysia & Indonesia. "The
number of piracy incidents, especially in Southeast Asia is really
increasing, and on top of that the brutality of the cases is
intimidating," said an official at Japan's Transport Ministry. "We
were particularly alarmed by the incidents last year." Three Japanese
ships were attacked in 1999, including the M/V Alondra Rainbow, which went
missing en route to Japan from Indonesia. Its 17 crew members were set
adrift in dinghies and only picked up in Thai waters 2 weeks later.
- Atlantic Shake Up ......... as members of the New World Alliance
Atlantic carrier group have unveiled a new ship-share deal with Maersk
Sealand. APL & Mitsui OSK Line will pull out of their existing
agreements with Lykes Lines, with whom they currently charter space, while
Hyundai Merchant Marine will do likewise with Mediterranean Shipping Co. In
a statement the TNWA said the deal would "greatly enhance the
Alliance's transatlantic service". "While full details have yet to
be completed, the TNWA will extend its Asia-U.S. East Coast service to North
Europe and will operate this loop in cooperation with Maersk Sealand. It is
expected that the existing arrangements will expire by the end of the year
and the new agreement will then become effective." The deal will shake
up the plans of rival lines in the Grand Alliance conference, who had been
in negotiations with Lykes' parent Americana Ships and who also currently
charter space on Maersk Sealand ships. U.S. based CP Ships subsidiary Lykes
will no longer carry cargo for TNWA, making it less valuable to the Grand
Alliance as a partner in a combined carrier 'super group'. Grand Alliance
members P&O Nedlloyd, OOCL, Hapag-Lloyd, NYK line & MSC. will also
have to arrange new tonnage to carry their cargo when the Maersk ships go to
- Bypassing Hong Kong? ........ as volumes between Xiamen, Fujian
Province, & Kaohsiung, Taiwan, soared to a record high of 95,320 TEU for
the 1st quarter of 2000. The volume is up a huge 28.3% on the corresponding
period in 1999 and accounts for three quarters of all cross-Straits trade,
approximately US$25B per annum. The recent move by Taiwan to end a 55-year
ban on shipping from the mainland to several Taiwanese controlled islands in
the Strait is likely to have a direct impact on these figures. It could even
kick-start the beginning of direct links to key commercial ports with much
of the cross-Straits trade moving directly through Kaohsiung, Keelung,
Hualien & Taichung and bypassing ports such as Hong Kong altogether.
Hong Kong's role as a transshipment middleman has been shrinking steadily in
recent years. As China-Taiwan commercial ties grow stronger, companies are
finding ways of encircling the regulations & bypassing the former
British colony altogether. China saw its aggregate container traffic volume
rise by almost 38% last year with a total throughput of 14.15 million TEU,
up from 10.27 million TEU in 1998. The boom is likely to be sustained with
China's entry to the WTO on the cards & a worldwide growth in container
traffic. Recent figures have shown that Shanghai firmly established itself
as China's leading port, handling 4.21 million TEU alone last year. The 3
ports in the Shenzhen area collectively represent China's 2nd placed port,
with a volume of 2.98 million TEU in 1999, a strong year-on-year rise of
- Charter Boom ........ as with demand rising & supply limited,
charter rates for 2,500-to 3,000-TEU containerships have shot up to record
levels. Average charter rates for a 3,000-TEU vessel ballooned from last
year's level of US$10,000 to US$23,000 per day with some carriers even
reporting difficulty in obtaining the vessels they need. The increase in
demand for containership chartering has also led to a decrease in boxship
scrapping. Shipping companies' surveys show that 51 containerships,
representing 53,150 TEU were scrapped in 1999 compared with a record 54 with
86,191 TEU during the previous year.
- The Dream On Track ......... as FastShip Inc. has signed a
preliminary agreement with National Steel & Shipbuilding Co. to build
the 1st 4 cargo vessels of a 9 ship fleet that FastShip says will make
Trans-Atlantic journeys in half the time that conventional ships do. The
deal keeps FastShip on track for a 2003 target date to make its 1st
high-speed runs between Philadelphia & Cherbourg, France.
- Top 100 Container Importers & Exporters - A Special Report
.............. as The Journal of Commerce Online presents a special review
of "Top U.S. Importers in TEU: 1) Wal-Mart, 2) Dole, 3) Chiquita, 4)
Target Stores, 5) Bridgestone Firestone 6) Michelin, 7) Nike -- & Top
Exporters of containers: 1) Du Pont 2) America Chung Nam, 3) Westvaco, 4)
General Electric, 5) Philip Morris, 6) DaimlerChrysler. http://www.joc.com/top100_2000/index.htm
- FMC Spat Ending? .............. as Maersk, Sealand, P&O
Nedlloyd & the FMC's bureau of enforcement have reached an agreement
which will likely lead to the settlement of a dispute that has been pending
before the agency for 3 years. The carriers have clarified & refiled a
space charter agreement that the FMC said was unclear to the point that the
carriers may have violated the 1984 Shipping Act by operating without an
agreement on file with the agency. The dispute has been pending since May 5,
1997. Final approval of the settlement agreement by the FMC is required. The
newly filed, restated agreement calls for Maersk, Sealand to charter space
for 150 TEUs weekly in each direction in an all-water service between Calif.
& Northern Europe. P&O Nedlloyd will pay for the numbers of slots
whether or not they are used, but the carrier will be able to sublet slots
if it obtains written consent to do so from Maersk, Sealand. Each carrier
will handle its own marketing & sales activities, issue its own bills of
lading, and handle its own claims.
- EU Stowaways Up .......... as the Int'l Maritime Organization has
seen a tremendous increase in the number of stowaways boarding vessels in
African & European ports, compared to American & Asian ports. The
London-based organization has reported 142 incidents involving about 500
stowaways since its last report in Sept. Reports of incidents have been
received from Belgium, Denmark, India, Norway, the UK, the Int'l Chamber of
Shipping and the Baltic & Int'l Maritime Council. Asian & American
reports reported about a dozen stowaway cases during the past 6 months. The
stowaway issue is receiving attention of the IMO's Facilitation Committee,
which is drafting proposed text for enforceable stowaway regulations.
- Help Wanted: Must Work For Free .......... as the Philippine
Government is currently looking for an alternative to Geneva-based Societe
Generale de Surveillance (SGS) as a pre-shipping inspector. Until the end of
March, SGS had been acting as the pre-shipping inspector for cargo arriving
in the Philippines from Japan. But because of the Philippine Government's
failure to settle a debt of an estimated US$113M with SGS, the company has
declined to sign a renewing contract. Working for the Philippines since
1987, SGS did not renew the yearly contract at the end of 1999. Instead, the
company offered a 3 month contract which was put forward as a grace period
for the Philippine Government to pay its debts. However, the sum in question
was not forthcoming.
- Stena Line: "FOR SALE" .......... as its manager &
major shareholder Sten Olssen says he can no longer suffer its losses as a
result of the scrapping of duty-free sales in the European Union. The
Swedish company, which, among others, operates the route between Hook of
Holland (port of Rotterdam) and Harwich (UK), is open to a takeover of the
company as a whole and he wants a promise that the company 'will remain
intact'. Stena Line belongs to the biggest ferry companies in the world. Its
losses last year amounted to US$60M on a turnover of US$900M.
- Calls For "Black Box" ........... as France has proposed
installing a "black box" on tanker ships to track what they are
carrying & whether they empty their bilges illegally on the high seas.
Transport Minister Jean-Claude Gayssot, who has made ship safety a top
priority after an oil spill polluted France's Atlantic coast in Dec., said
he had commissioned a study of the feasibility of such airplane-style
recording devices. "It would record the composition of the cargo and
the name of the owner," he told reporters. He is lobbying in Brussels
for a European Union initiative to ban from EU waters all ships below
certain safety norms and to oblige all vessels to empty their bilges
properly in port rather than on the high seas. France wanted to make a naval
"black box" mandatory for ships calling in French ports even if
Brussels did not adopt the idea for all of the EU. The Maltese-registered
tanker M/T Erika, broke up & sank in heavy seas off the Brittany coast
in December, causing an oil spill that wrecked beaches and hurt tourism
& fishing in western France.
- A China First ........ as Grand Alliance vessel, M/V P&O
Nedlloyd Sydney, made its inaugural call yesterday at Xiamen, marking the
1st direct service between the U.S. west coast & the Chinese port.
- Gaza Port? ............ as Dutch firm Ballast Nedam & its
French partner Spie Batignolles has won a US$66M contract to build a new
harbor in Gaza. The deal marks the 1st major port development in
Palestinian-controlled territory since peace accords were signed with
Israel. The port, which will take two years to build, will be able to handle
ships of up to 35,000 dwt. The contract is being partly financed by the
French & Dutch governments.
- Human Wave Continues ........ as 15 illegal immigrants from China
were detained on April 11 after authorities found them crammed in a filthy
cargo container unloaded at our Port of L.A. from M/V President Adams
arriving from Hong Kong. INS officers had to put on hazardous materials gear
before entering the container. They were awash in human waste. The
immigrants were exhausted but appeared to be in good health. They were
discovered by security personnel. Smugglers rigged the 1 x 40' container
with escape hatches & an elaborate ventilation system using fans &
car batteries for the two-week trip across the Pacific. The container was
supposed to contain toys. More than 120 Chinese stowaways have been arrested
at U.S. West Coast ports since Jan. 1.
- Level Seas? ......... as a new Internet based on-line exchange is
the latest venture earmarked as being set to transform the way shipowners,
shipbrokers & cargo owners conduct business. LevelSeas.com aims to offer
a 'life of the voyage' solution for all seaborne wet & dry bulk
commodity shipping and is scheduled for launch in 3rd quarter 2000.
"The advent of LevelSeas.com provides a real opportunity to create an
electronic market place for the shipping industry," said Gary Weston,
chairman of Clarksons Shipbroking, one of the venture's backers. Other names
behind this latest dot.com operation include grain shipper Cargill & oil
majors BP Amoco & Royal Dutch/Shell Group. http://www.levelseas.com
- Junior Hits The Road ............ as APL is rolling out a specially
outfitted cargo container -- converted to a mobile classroom -- that will
help students learn about international trade. The mobile classroom is part
of an educational effort that started three years ago with a colorful,
40-foot shipping container known as the "Boomerang Box" that
actually carries commercial cargo, allowing school children to follow its
global journeys via an interactive Web site. The program, in which some 150
schools around the world now participate, just had its first offspring: APL
is launching "Boomerang Box Junior," a 20-foot container replica
of the original Box. The project, in conjunction with an on-line curriculum,
teaches kids from 6 through 18 years old about geography, world cultures,
reading and Int'l trade via a full curriculum on its Web site. The original
40-foot shipping container has carried shipments to points throughout the
Americas, Asia and Europe. Last spring, when it arrived in Singapore to take
on cargo, it drew a large crowd of children and civic officials. Students
from more than 15 countries have learned about Int'l trade from the
program's Web site, which has had more than 116,000 hits since the current
school year began in Sept. In other news, APL announced its millionth online
transaction. APL's customer PWH Originals of the Netherlands achieved this
landmark transaction by accessing APL's web site to trace its container
shipment from Chittagong, Bangladesh to Rotterdam. http://www.apl.com/boomerangbox
- Sea Mystery ........ as the IMB (Int'l Maritime Bureau) reports a
mystery hijacking which is said to have occurred on Feb. 6 in the Andaman
Sea. A Russian tanker responded to distress signals & rescued 12 men in
a capsized life raft. The men said that they were members of the crew of the
Thai vessel M/V Pilin 21 and that armed pirates had boarded their ship &
forced them onto life rafts at gunpoint. However, the IMB could find no
records of such a ship existing & no official report was ever made to
its reporting center by the ship's owner or operator.
- The Hunt For Red "Ore-ctober" .......... as Russian
metals giant Norilsk Nickel has finished a feasibility study of a project to
use nuclear submarines for ore shipments, which once started will cost
US$80M. Now the board of directors has to approve spending for its
implementation. Also decommissioning of the submarines should be sanctioned
by the state. The company could use 2 Typhoon class submarines to carry
cargoes between the Arctic ports of Murmansk & Dudinka, where Norilsk
units are situated. The 30,000-ton Typhoon is Russia's largest submarine,
which can carry up to 20 nuclear missiles. But defense experts say that due
to cash shortages not all of Russia's Typhoons carry them. In Feb. Norilsk
instructed its research institute, Gipronikel, to prepare a feasibility
study on using submarines for cargo transports due to rising freight costs
of nuclear icebreakers. Norilsk has to resort to expensive nuclear-powered
icebreakers to guarantee shipments of ores & concentrates between its
- Aiming At The Foot -- Over & Over! ......... as naval &
missile forces have had a bad few days in the former Soviet Union. The
Russia's Pacific Fleet destroyer Burnyi accidentally fired a shell in
Vladivostok Harbor on April 10, hitting an anti-submarine ship. Nobody was
injured in the incident -- which happened in the Golden Horn Harbor in the
center of Vladivostok -- but the superstructure of the anti-submarine vessel
Admiral Vinogradov, was damaged. Oh, do you think! Next, a Russian dummy
weapon hit a Ukrainian passenger ship in the Black Sea last Monday. Now
Ukraine's Defense Minister Kuzmuk also confesses that a missile fired in
military training hit an apartment block 80 miles away last week, killing 3
residents. Another Russian missile went out of control in Kazakhstan Friday.
The weapon that went astray on April 27 was a Soviet-made surface-to-surface
Tochka-U fired from Honcharyvsky training ground in the Chernihiv region of
northern Ukraine. A few hours before Kuzmuk's news conference, a Russia
dummy missile fired during training slammed into the Ukrainian passenger
ship near the Crimean Peninsula, injuring one person. Wow! Better duck! It's
- Volumes: The Port of Antwerp said cargo tonnage through the 1st
quarter of 2000 was up 13% to 31.14 million tons. The Port of Barcelona saw
a 13% growth in container traffic for 1999, a total of 1.24 million TEU,
making it the Mediterranean's #1 port.
- This Month in U.S. Naval History .......... as on April 25, 1898,
the U.S. Congress declared war with Spain. The declaration was a result of
the sinking of the battleship USS Maine in Cuba's Havana Harbor 2 months
Below are the "extremely edited" April casualty reports just as we
posted them to our web site, just as you would have seen them, day by day when
visiting. Space does not allow us to provide you with either the full stories,
or even all the stories. Get the full details on line.
At our site you can request to be notified by e-mail whenever there is an
incident at sea, or some major transport event. It's automatic! Be up to date!
Sign up for our daily reports.
Visit our Vessel Casualties & Pirate Activity Database. http://www.cargolaw.com/presentations_casualties.html
This is only a partial list of casualties for the month in that most
dangerous place ....... out there.
The 8 man crew of the 1,219 dwt general cargo ship M/V Gran Rio R are
missing, presumed drowned after their 1957-built ship disappeared off Tobago in
the Caribbean. Search & rescue missions found no sign of the St Vincent-flag
vessel, which is thought to have sunk with all hands. (Sun. April 30 2000)
The M/V American Mariner, wth iron ore pellets, struck a light just north of
Port Huron early April 28, tearing a hole in the hull. The freighter blocked 30
ships while stuck in Lake Huron's shipping channel for almost a day. The ship
lay across the Huron Cut shipping channel, halting other vessels trying to sail
south into the St. Clair River or north into Lake Huron. None of the 26 crew
were in danger & remained aboard as the 730-foot-long vessel took on water.
The ship used its own pumps & portable pumps from the Coast Guard to remove
the water, and about 1:45 a.m. Saturday, the waiting vessels were allowed to
begin navigation through the channel. (Sat. April 29 2000)
The Bahamas livestock carrier M/V BADER III (36,387 gross), Egypt for
Portland, Australia, had fire in auxiliary generator in lat 28 40S, long 104
09E, Apr 22. Taken in tow by tug Wambiri bound Fremantle, where ETA Apr 30.
(Sat. April 29 2000)
The Venezuelan M/V CARMEN FABRIANA (489 gross), cargo of cement, had
engine-room fire, which later spread, in lat 11 55N, long 66 30W, Apr 26. Crew
evacuated safely. Still burning/drifting in lat 11 09.6N, long 66 59.8W, Apr 27.
Tug proceeding. (Fri. April 28 2000)
The ferry M/V Aquitaine crashed into a pontoon while docking at this northern
French port city, slightly injuring 38 passengers. The ferry, which had departed
Britain from Dover, was carrying 1,241 passengers & 123 crew at the time of
the accident, according to a statement released by P&O, which owns the
ferry. 38 people had minor injuries, with one person suffering a broken arm. The
accident occurred after an engine stalled, preventing the ferry from backing up.
The vessel & the pontoon suffered minor damage. (Thus. April 27 2000)
The USCGC Healy, built for traveling through ice-packed polar waters, has
started a rare trip through Canada's disputed Northwest Passage. The voyage by
the U.S. Coast Guard ship is the 4th by an American-flagged vessel through the
passage since Canada & the U.S. signed an Arctic cooperation agreement in
1988. Under the agreement, both countries pledged to work together to help with
the navigation of icebreakers & share research. But the question of who
controls the icy link between the Arctic & Atlantic Oceans has remained
unresolved. The U.S. has never recognized Canada's 1973 claim of the Northwest
Passage as an internal Canadian waterway. Before the cooperation agreement, 2
U.S. ships sent without permission -- the oil tanker M/T Manhattan in 1969 &
the icebreaker USCGC Polar Sea in 1985 -- caused disputes between the
neighboring countries. (Thurs. April 27 2000)
The St.Vincent & Grenadines bulk carrier M/V SEA QUEEN (7,248 gross),
broke in two in way of No. 2 hold while loading cement at Mina Saqr Apr 22.
(Thurs. April 27 2000)
The Panamanian chemical tanker M/V NIPAYIA (4,750 gross), Tallinn for
Europoort, grounded near Buoy 43, near Walsoorden, River Scheldt, while inbound,
Apr 25. Tugs on scene & will attempt to refloat on tonight's high tide.
(Wed. April 26 2000)
The St.Vincent & Grenadines bulk carrier M/V MINERVA H. , ex M/V Minerva,
Norwegian flag, (1,480 gross), Kolding for Skagen with wood, some of which on
deck, grounded in lat 56 21N, long 10 57 E, Apr 23. Engine-room flooded.
Refloated Apr 24 and towed closer to shore where beached in lat 56 23N, long 10
56E, to prevent sinking. Crew taken off. Surveyors on scene. (Tues. April 25
PIRATE ALERT >>> Heavily armed pirates have kidnapped 20
people, including 10 foreign tourists, on a tropical resort island off Borneo in
eastern Malaysia & headed out to sea. Malaysian officials said they knew
where the hostages, including 6 foreign women, were being held & believed
they were safe. The Philippines said a Moslem rebel group in the southern
Philippines might be responsible. The 6 gunmen arrived in two boats on the
evening of April 23 on tiny Sipadan island, a world-renowned diving spot about
20 miles off the scenic coast of Malaysia's Sabah state, & took 22 hostages.
Two Americans who were captured, both aged 51, escaped into the woods before the
captors ordered the hostages into two boats. The captors left one of their boats
on the island & stole one belonging to the resort. There were no reports of
demands by the pirates. The hostages are 9 Malaysians, 3 Germans, 2 French, 2
South Africans, 2 Finnish, 1 Lebanese & 1 Filipino working at the Sipadan
Island Resort. The 10 foreign tourists include 6 women & 4 men. Philippine
Defense Secretary Orlando Mercado said the captors appeared to be Filipino &
had sped towards Philippine waters with the hostages. Philippine authorities
ordered the navy & air force on alert. Malaysia's Defense Ministry
dispatched a patrol boat & a maritime surveillance aircraft. The captors are
believed to be carrying AK-47 rifles & the 6th had a bazooka gun when they
arrived at the Sipadan Island Resort during dinner on Sunday. They stormed the
police station on the island & the local wildlife & forestry office
before heading for the resort. (Mon. April 24 2000)
U.S. bulk carrier M/V CALCITE II (8,188 gt, built 1929), loaded with
limestone, grounded while departing Port Inland for Cleveland, Ohio, on Apr 19.
Vessel was unable to refloat under her own power & she was finally refloated
with tug assistance on Apr 20. Tank soundings revealed that she was not taking
water. Vessel will proceed Cleveland for internal structural examination. (Mon.
April 24 2000)
The Japan 279-ton F/V Daitoku Maru No.7 was apparently fired upon &
seized off Japan's northern island of Hokkaido. A Russian border patrol vessel
fired on the fishing vessel on Friday & appears to have seized the ship with
20 crew aboard, the Japanese coast guard said. This is the 1st incident of its
kind in 3 years & could cast a shadow over next week's initial meeting
between Japanese Prime Minister Yoshiro Mori & Russian President Vladimir
Putin. Japan Coast Guard has dispatched 4 vessels to the scene to investigate,
but has been unable to contact the ship. The incident appeared to have taken
place in Int'l waters, rather than in disputed waters around 4 small islands
north of Hokkaido. (Fri. April 21 2000)
The Egyptian M/V NEPTUNE PIONEER (1,753 gross) had water ingress into
engine-room while adjusting ballast valve during cargo loading operations at
Suez Apr 20. Suez Canal tugs alongside to pump water out. (Fri. April 21 2000)
The Panamanian chemical tanker M/T CHEM RUNNER (3,106 gross), Belawan for
Tema with palm oil, had main engine problems off Mauritius Apr 6. Towed to Port
Louis Apr 10. Repairing Apr 19. Repairs ETC Apr 21. (Thurs. April 20 2000)
The Austrian M/V LECH (4,372 gross) reported drifting with engine trouble in
lat 46 24.5N, long 03 43.3W, Apr 17. Tug Suhaili proceeding. ETA on scene Apr
18. (Wed. April 19 2000)
AGAIN IN SAME WEEK For Sister Ship ! >>> The Philippine inter-island
ferry M/V VIVA PENAFRANCIA slammed into a fish corral at sea early on April 17,
disabling its propeller. The vessel was Mindoro Island for Batangas with 117
passengers & 20 crew, struck a fish coral, listed & sank, 6 nautical
miles off Batangas Apr 17. All passengers & crew rescued safely. It was the
2nd sea mishap to occur in the Philippines in 5 days, after at least 138 people
drowned & 70 rescued last week when an overloaded ferry capsized off Jolo
Island in the So. Philippines. In the latest incident, a sister ship tried to
tow the 260-ton Viva Penafrancia to port in nearby Batangas city after its
passengers & crew were transferred to a passing vessel but the distressed
ferry listed & sank with its cargo of motor vehicles. The Viva Penafrancia
struck a fish corral -- a bamboo-made shelter for fish -- in the open sea. The 2
incidents in less than a week further blight the sorry maritime safety record of
this archipelagic country of more than 7,000 islands. In 1987, about 4,000
people died in a collision between the ferry M/V Dona Paz & an oil tanker --
the world's worst peacetime sea tragedy. (Mon. April 17 2000)
The St.Vincent & Grenadines M/V SUN BIRD (1,886 gross), for Aruba with
gypsum, sank in lat 13 04.5N, long 69 51W, Apr 16. All crew rescued safely.
(Mon. April 17 2000)
The South Korean chemical tanker M/T BU IL (997 gross), Ulsan for Shanghai
with chemicals, was in collision with tanker M/T Sunyang Chemi 1 off Cheju
Island, in about lat 32 37.4N, long 125 39.6E, Apr 14. M/T BU IL capsized &
sank. All crew rescued safely. (Sat. April 15 2000)
The Bahamas M/V MILLENIUM YAMA (14,038 gross), Torre Annunziata for Montreal,
had main engine breakdown followed by an engine-room fire off Godbout, Baie
Comeau, in lat 49 05.48N, long 67 38.30W, Apr 11. Fire quickly extinguished by
crew. Towed into Baie Comeau. (Fri. April 14 2000)
The overloaded wooden Philippine ferry M/V Arlahada headed for Malaysia has
ca psized & sank, killing at least 56 people. More than 100 others are
missing & feared dead. 19 people have been rescued as of April 12 morning.
Many passengers were crowded on one side of the Arlahada, causing it to tip
& then capsize shortly after leaving Jolo, the provincial capital. The
vessel was only authorized to carry cargo, not passengers, said the Coast Guard.
It had 9 crew & 11 cargo agents on board when it departed Jolo. (Thurs.
April 13 2000) The death toll is now 138. (Sun. April 16 2000)
The Maltese chemical tanker M/T OLAR (4,743 gross) contacted the quay while
departing Antwerp Apr 12. Sustained damage to bulbous bow. Returned to Berth
413, Antwerp, after survey. (Thurs. April 13 2000)
The United Kingdom tanker M/T WHITIDE (1,148 gross), Cork for Milford Haven
in ballast, reported disabled w/ broken crankshaft off St. Annes Head, in lat 51
40N, long 06 11W, Apr 11. Tug Connor proceeding from Swansea. (Wed. April 12
The Russia's Pacific Fleet destroyer Burnyi accidentally fired a shell in
Vladivostok Harbor on April 10, hitting an anti-submarine ship. Nobody was
injured in the incident -- which happened in the Golden Horn Harbor in the
center of Vladivostok -- but the superstructure of the anti-submarine vessel
Admiral Vinogradov, was damaged. Oh, do you think! The accident happened when
routine weapons testing on the destroyer went wrong, a spokesman said.
"Today, between 2200 & 2300 GMT on Sunday on the destroyer Burnyi
during a planned check of weapons & machinery there was an unsanctioned shot
of a dummy shell because of a violation of security procedures." Accidents
have become more frequent in Russia's once mighty Pacific Fleet, which as well
as most other units of the Russian armed forces, is owed millions of dollars by
the state. Both ships involved in the incident were preparing for an official
visit to South Korea on April 19. Seoul, take cover! (Tues. April 11 2000)
The Honduran m cement carrier M/V RAYSUT CEMENT I (947 gross) developed a
list while loading bulk cement at Pier No.3, Salalah, & subsequently sank
Apr 9. Master & all crew reported safe. (Tues. April 11 2000)
Turkish coast guard officials are trying to free 9,068-gross ton Antiguan
container ship M/V Jessilena from the shores of the city of Istanbul where it
ran aground on April 9. The bow is stuck nearly atop a moored boat restaurant in
the suburb of Bebek on the shores of the Bosphorus strait running through the
city. Jessilena took on cargo at Istanbul's Haydarpasa port & was bound for
the Romanian city of Constanta when its rudder froze, causing the ship to veer
shoreward. Turkey's Bosphorus & Dardanelles straits, linked by the Marmara
sea, are among the world's busiest shipping lanes and the site of frequent
collisions. Turkey opposes the increased traffic, citing danger to Istanbul's
more than 10 million inhabitants, but is bound by the 1936 Montreaux Convention
to provide free passage to all merchant vessels in peacetime. A Russian-flagged
tanker ran aground and split in two in the Marmara sea off Istanbul this past
Feb. (Mon. April 10 2000)
The Swedish tanker M/T UNITED ANTON (11,375 gt), bound Rostock with gasoline,
grounded off Langeland in the Great Belt on Apr 9. No damage or pollution has
been reported. (Mon. April 10 2000)
The Singapore container ship M/V Xpress Makalu slammed against a jetty at
Bangladesh's main Chittagong port today. The 125-meter ship sustained damage to
its bows when an ebb tide dragged it against a dilapidated jetty. Temporary
repairs underway. There were 141 containers aboard. (Sat. April 8 2000)
Sri Lankan rebels destroyed 2 fast-attack navy gunboats in a pitched sea
battle against government troops off a strategic causeway that both sides are
battling to control, in the waters off Vadamarachchi, 180 miles north of
Colombo. The navy vessels caught fire & sank after being hit by rebel
artillery fire & the guerrilla naval unit monitored in the northern
military-controlled town of Vavuniya. The battle took place near the Elephant
Pass causeway, which links the mainland with Jaffna Peninsula. The guerrillas
launched a major offensive 2 weeks ago to control a vital bridge in their effort
to recapture Jaffna town, their former capital, which was lost to the military
in 1996. (Fri. April 7 2000)
Two Royal Engineers were killed & a 3rd injured in an accident during a
routine inspection of coal ship M/V Diamond Bulker in Northern Ireland. There
was no indication of terrorist involvement or an altercation between the English
engineers & the crew of the Philippine-registered vessel, which was carrying
a cargo of coal from Colombia. "They were on board the vessel that was
being subjected to the search & they met their end in the hold area,"
an army spokesman said. The 2 engineers, who were working with the Royal Navy,
may have been overcome by fumes, hit by shifting cargo or fallen off a ladder
during a check of the ship anchored in Lough Foyle in Londonderry late on
Wednesday. But he stressed it was too early to tell exactly what happened and
that an investigation was underway. One of the dead men was from Plymouth and
the other from Bristol. Their ages were given as 31 & 23 but their names
were being withheld until relatives were notified. The injured man was in stable
condition in hospital. (Fri. April 7 2000)
M/V FENSFJORD (1,000 gt, built 1980) was drifting in lat 52 45.12N. long 03
51.9E, Apr 4, owing to main engine failure at 2130, UTC. M/V Cincobulk made 3
attempts to get a line on board the casualty, but to no avail. At 0100, UTC, Apr
5 Fensfjord reported making water. Helicopter proceeding to pick up crew.
(Thurs. April 6 2000)
M/V VICTOR (2,740 gt, built 1968) reported leakage of water into her
engine-room in lat 48N, long 06W, at 1900, local time, Apr 3. She was taken in
tow by the tug Abeille Flandre & was expected to arrive in Brest at midnight
Apr 4. (Wed. April 5 2000)
The Finnish roll-on roll-off ferry M/V FINNFELLOW (14,297 gt), bound Naantali
with 58 passengers, grounded on Overo Island, in lat 60 06.82N, long 20 30.4E,
on April 2. Salvage operations under way. (Tues. April 4 2000)
Ro-ro M/V DART 2 (9.080 gt, built 1985) was in collision with dredger/sand
carrier CITY OF WESTMINSTER (3,914 gt, built 1990) in lat 30.28N, long 00 31.59E
on April 2 after City of Westminster had steering problems. Both vessels
damaged. City of Westminster proceeding to Chatham docks with hole above
waterline. Dart 2 berthed at Dartford. (Mon. April 3 2000)
A lone French oarsman abandoned his attempt today to row across the Pacific
Ocean after doctors sent to give him medical supplies found traces of gangrene
in both his feet. Jo Le Guen, who set off Feb. 3 from New Zealand's capital,
Wellington, on his 5,580 mile voyage, aiming for Cape Horn, Chile, was taken on
board an unidentified container ship with just 1/3 of his trip completed. Le
Guen, 52, was found by doctors to be suffering septicemia, or blood poisoning,
& had the beginnings of gangrene in his feet. He was delirious & too
tired to speak. His boat, designated S/V Keep It Blue, boasted electronics
powered by batteries charged via solar panels & 2 generating windmills, as
well as high-tech navigation & communications equipment. Le Guen carried 3
sets of 9-foot oars, dried food for the duration of the journey, fresh water
& 2 water purifiers capable of extracting salt from sea water. Le Guen had
estimated it would take 3.5 months of rowing to reach his destination. No
stranger to open ocean crossings, the father of 5 has twice rowed the Atlantic.
On one trip he went solo & on the other he was in a 2 man team. Our industry
is sorry that your proven ability failed to reach the goal this time. (Mon.
April 3 2000)
Toxic gases are thought to have been the cause of the deaths of 3 crewmembers
on board the Italian-flag products tanker M/T Alderamine in the Atlantic. It is
thought that the gas leak occurred during routine maintenance work as the 30,572
dwt ship headed for Spain in ballast from the U.S. The exact cause of the
accident is not yet known. (April 1 2000)
The 551 gross ton Turkish-registered M/V Huseyin Avci & the 27,031 gross
ton Lebanese-flagged dry cargo M/V Poylak collided on April 1 in the Black Sea
near Turkey's busy Bosphorus Strait. There were no casualties & both ships
remained afloat despite sustaining damage. The strait remained open to traffic.
The Poylak was traveling ballast from Greece's Piraeus port to the Ukrainian
port of Berdyansk on the Black Sea. The Huseyin Avci, was carrying minerals, but
destination not stated. The 2 ships were held for investigation. Turkey's
Bosphorus & Dardanelles straits linking the Mediterranean and Black seas are
among the world's busiest & most dangerous shipping lanes. (Sat. April 1
NOTE: The historic dangers of carriage by sea continue to be quite real. Shi
ppers must be encouraged to purchase high quality marine cargo insurance from
their freight forwarder or customs broker. It's dangerous out there.
E-commerce for Freight
Transportation Conference & Exhibition ......... as Las Vegas is the
setting for the 2nd annual event to be held on June 14-16, 2000.
Expert Tips To Outwit
Container Ships For
The 21st Century
........ the ultimate container vessel.
Big List of Maritime Portals.
Tracker II ........Internet Shipment Tracking System thin client
version. Thin client makes it possible accessing Global Tracker II database from
anywhere around the globe with just a web browser.
...... you'll look, just because.
myCustoms ......... an online,
real-time, fully automated customs transaction system (FACTS).
........ aviation consulting & art gallery.
Hutchison Port Holdings
......... has established an e-commerce business. The Hong Kong terminal
..........every week a new picture and description of a tugboat.
E-Mail At Sea
....... the books.
QuoteShip.com ......... a new
B2B that brings shippers and their trusted transport providers together to
conduct business faster & more efficiently.
Ports 'n Portals
........will deliver a range of e-commerce service products for marine
procurement, freight forwarding & cargo processing. One of these services is
Arena, an Internet-enabled electronic infrastructure for the global
business-to-business procurement of goods & supply chain management.
Cathay Pacific Airways
........ real time flight information.
ABF Freight System .......... the
LTL carrier says it has made significant enhancements to "eCenter",
its suite of Internet-based transportation tools, & offers a US$25 bribe to
customers who try the features before June 30, 2000.
Conference on Marine Engineering Systems ........... May 22-23, 2000,
U.S. Merchant Marine Academy, Kings Point, NY
Sports Jokes.com .........by
The Humor Network, offers subscribers a daily dose of online sports humor as
well as a look at "lowlights" from the world of sports delivered
directly to their computer screen.
"Dance" ....... still another way to make enemies at the
office. Sound card required to truly annoy.
- AWBs Under Old Warsaw
- Plus Monreal Protocol 4
-- By Rob Conway, Esq. for The Cargo Letter
Sydney - 27 April -- The Court of Appeal of the Supreme Court of New South
Wales has recently considered the particulars required by Article 8 of the
original Warsaw Convention. This decision will be of interest to all Int'l
forwarders. Below is an Internet link to the entire decision in our recent High
Court of Australia case of Emery Air Freight Corporation Vs. Merck Sharpe &
Dohme (Australia) Pty Ltd & Anor.
The case is at this stage an unreported, but a decision handed down on 19
Nov. 1999. Merck has filed an application for special leave to the High Court of
Australia, which is equivalent to seeking a writ of certiorari in the United
States Supreme Court.
The decision contains a very useful analysis of the role of freight
forwarders & their status in shipments of goods by air. Given that the air
waybill in question was subject to the unamended Warsaw Convention of 1929, the
case was largely dealt with & was decided in accordance with decisions of
the courts of the United States. The Australian Court of Appeal unanimously
agreed that in interpreting the requirements of Article 8, preference was to be
given to substance over form. Implicit in this attitude is a recognition of the
commercial & practical realities of the activities and operations of freight
forwarders & airline operators.
Article 8(b) - The Place of Departure: The majority distinguished quite
clearly between a place of departure, from which the contractual carriage
begins, & the airport of departure, from which the actual air carriage
begins and noted that the latter did not necessarily satisfy Article 8(b). Only
the dissenting judgment of Fitzgerald JA required the place of departure to be
the place of departure of the aircraft carrying the consignment. However, in my
view, if this is correct, the necessity and operation of several articles of the
Convention would be obviated, for example Article 18(3).
Article 8(c) - The Agreed Stopping Places: The Court of Appeal affirmed the
decision of the Court at First Instance with respect to Article 8(c) and in
doing so followed considerable U.S. authority that incorporation by reference to
a scheduled flight or timetable is sufficient. Again the Court of Appeal took a
pragmatic view of the commercial realities of forwarding and the nature and
significance of the air waybill. The Court of Appeal also held that the
definition of "arrêts prevus" was not a reference to
"agreed" but rather "contemplated" stopping places. This may
be of some assistance in the future because it will allow a forwarder or airline
to argue that there were no contemplated stopping places because it had reserved
the right, in its terms & conditions, to determine & vary the routing in
accordance with a recent decision of the Court of Appeal of the U.S. District
Court for the Ninth Circuit.
Article 8(e) - The Name and Address of the First Carrier: In line with the
views expressed by the majority on the operations of a freight forwarder &
the role of forwarders in the carriage of goods by air, the Court held that
Emery was the 1st carrier & followed considerable U.S. authority in so
doing, including Martin Marietta Corp. v Harper Group and Brink's Ltd v South
African Airways. Merck was also faced with the curious dilemma, namely that they
sued Emery as the 1st and last carrier and this meant that their submissions
with respect to Article 8(e) were somewhat inconsistent.
Please do not hesitate to contact me should you wish to discuss this
decision. The decision can also be accessed on the Internet: http://www.austlii.edu.au/au/cases/nsw/NSWCA/1999/415.html
Special Editor's Note: All this quite well said by our Sydney colleague, NONE
THE ABOVE LEGAL CONSIDERATIONS APPLY where both the origin & destination
country have adopted Montreal Protocol 4. The Cargo Letter has prepared an in
depth review of Montreal Protocol and a set of training tools for your staff at:
-- by Michael S. McDaniel for The Cargo Letter
Now that the cost of a "Digital Subscriber Line" (DSL) for Internet
access has dropped in price, small & medium size transportation companies
are signing up for this new technology by the hundreds of thousands. Most users
are so eager to start using the Web 100 times faster than a 56.6K modem -- that
no time is spent considering the security risks involved. Indeed, there are
While dial-up Internet users are either online or off, DSL features a full
time 24 Hr. & 7 Day Internet connection.
In a sense, an electronic door to your company is always open to the world.
The same thing may be said for older full time connection technologies such
as ISDN or T-1, but due to the expense, these technologies have typically been
used by large corporations with a trained information security staff. Because
the small to medium size concerns now flocking to DSL usually have no such
security personnel & procedures, their information will be at risk to
hackers, or even competitors.
Many hackers utilize software which electronically scans all possible
Internet addresses to determine which are in use at that time. Once an active
address is located, the hacker enters the address to see what's inside or what
mischief might be caused.
It is practically a mathematical certainty that your DSL connection will be
found by some hacker, sooner or later. On the other hand, some determined
visitors, such as a competitor, might take a more direct approach.
Fortunately, the experts tell us that protecting against this risk is a
fairly straightforward matter. For a PC running Windows 98, there are two steps
First Step: Remove the easiest entry to your computer by turning off file
& printer sharing. If you are using the peer-to-peer networking capabilities
of Windows 98, ignore this step and leave sharing turned on.
- Select Start/Settings/Control Panel
- Run the Network Utilities
- On the Configuration tab, click on "File and Print Sharing"
- Make sure both boxes are unchecked
Second Step: Install a low cost hardware or software fire wall to keep
hackers out. BlackICE
Defender, a $39.95 software product from Network ICE Corp. is a good buy.
To learn more about DSL. http://www.everythingDSL.com
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.
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